BA and Iberia get closer to merger

by Charlie Leocha on February 3, 2010


It seems that merger talks are proceeding well between Iberia and British Airways. They are discussing February dates as possible days to sign a memorandum of merger. This merger will create a behemoth in the international airline industry.

There are still stumbling blocks, especially, the multi-billion-dollar pension obligations, but executives seem to be aiming at a first-quarter deal.

This merger will provide both airlines will additional routes. Analysts say that the fit is exceptional and should be a money-maker from the start. The only problem seems to be that both airlines are losing money right now.

I can’t imagine how two money-losing operations when combined will become profitable. I’m sure there is a lot of work left to do on this one.

In the meantime

Print Friendly

Tagged as: airlines, British Airways, Iberia, merger

  • Ed F London

    First, with a fleet whose average age is 7 years, I doubt Iberia is still flying any 727s, are they? Someone in research might need to update their file photos.

    But, as a UK resident who flies often to BCN, I think all IB flights are listed on BA’s search as BA codeshare numbered flights. And similar if one looks on Iberia’s site.

    The fun can be when searching on Expedia.co.uk or similar and see the price differences, usually a few Pounds, on what are the exact same planes, flights, times. etc. So, as for a merger, probably won’t make much difference to us flyers. Except maybe the ability to choose seats in that gracious 24-hour window that BA allows.

    On the other hand, until recently, one could join Iberia’s frequent flyer programme any time while BA required a qualifying flight. Join one and get points from the other.

  • http://www.tripso.com/author/leocha Charlie Leocha

    I’ll get our research department right on it.

  • christian archer

    Good point Ed, they went out of service nearly 10 years ago in 2001. Now they have all Airbus.

Previous post:

Next post: